How can I reduce storage costs?

Reduce the cost of warehousing to ensure that the total cost of logistics and do not reduce the overall quality of service and target level of the enterprise under the premise of the common measures.

1, using “first-in-first-out storage to reduce the custodial risk of stored goods.” FIFO is one of the guidelines for storage management, which ensures that the storage period for each stored good is not too long and can reduce the custodial risk of the stored goods. Pallet racking, gravity flow racking, carton flow racking, etc. are all FIFO storage methods used.

2, Improving storage density and storage capacity utilization. Its main purpose is to reduce the investment in storage facilities and improve the utilization rate of the unit storage area to reduce costs and land occupation. This is the easiest cost to reduce in the warehousing segment.

3, the use of an effective storage positioning system, improves the efficiency of storage operations. The meaning of storage positioning is the determination of the location of the stored object. If the positioning system is effective, it can greatly save the time to find, store and take out, prevent errors and facilitate inventory. Storage positioning systems can take advanced computer management, can also take general manual management.

4, using an effective stocktaking method to reduce the difficulty of storage operations. The monitoring of the number of stored goods is conducive to mastering the basic situation of warehousing, and also to scientific control of inventory. A slight error in the actual operation will make the list and the goods do not match, must be timely and accurate grasp of the actual storage situation, often check with the account card to ensure that the integrity of the storage materials, which is essential for manual management or computer management. In addition, frequent monitoring is also important to detect the condition of the materials being stored.

5, accelerate the turnover and improve the output per unit of warehouse capacity. Storage modernization is an important issue is to change the static storage into dynamic storage, turnover speed will bring a series of benefits: fast capital turnover, high capital efficiency, small loss of goods, warehouse throughput capacity increase, cost reduction, etc… Specific practices such as the use of unit storage system, and the establishment of rapid sorting system, which is conducive to the realization of fast in and fast out, large in and large out.

6, take a variety of ways to operate, inventory assets. Storage facilities and equipment inputs, only in the full use of the case to gain, if not fully put into use or just inefficient use, will cause the cost of increased. Warehousing enterprises should be timely in decision-making, take a variety of business methods such as leasing, borrowing, and selling inventory of these assets, and improve the utilization rate of assets and equipment.

7, strengthen labor management. Wages are an important part of the cost of warehousing, and the reasonable use of labor is an important way to reduce the cost of warehousing. China is a country with the advantage of labor, wages are cheaper, and more use of labor is a reasonable choice. However, effective management of labor to avoid inefficient staff is also an important aspect of cost management.

8, reduce operating and management costs. Operating and management costs are the expenses and cost expenditures of business and management activities, including management fees, operating expenses, transaction costs, etc. Strengthening the management of such costs and reducing unnecessary expenditure can also achieve cost reduction. It is necessary to strengthen the management of operating and management costs when the expenditure does not generate direct benefits and returns from time to time and cannot be completely eliminated.

Warehousing activities are an integral part of driving production and meeting market supply and demand. Warehousing costs are relatively easy to control and manage in logistics costs, which are changing as the level of technology in logistics activities improves and the efficiency of warehousing increases. To be clear about the importance of warehousing in logistics activities, the problems that exist, and the content of warehousing cost control, in order to take appropriate countermeasures to solve problems, reduce costs and improve efficiency.
Warehouse management has an important role in controlling operating costs for enterprises to maintain sustainable development, so it is essential to choose a professional warehouse storage management business. Here I recommend Xinmiao for you, they are a professional storage solutions provider in China, in the storage industry has twenty years of experience, their main products are warehouse shelves and warehouse mezzanine, factory and products are through the ISO9001 and SGS certification, products exported to more than sixty countries around the world, strong, worth your trust.